Audit reveals three instances of noncompliance in school district budget

The Cape Girardeau Board of Education received several significant recommendations in an audit of the district's finances for last school year, discussed at a special session Monday night.

While superintendent Dr. David Scala said all revenue and expenditures are accounted for, there are three instances of noncompliance and one control weakness reported. The firm Beussink, Hey, Roe, Seabaugh & Stroder LLC completed the audit.

In one case, principal and interest payments of about $2.5 million were made but never recorded in the district's financial statements. According to the audit, debt service fund payments are made by the direct deposit trustee on behalf of the district. These payments are reported in monthly statements, but "this activity was not posted to the general ledger as payments were made," according to the audit. There were also transfers from the general fund to the special revenue fund that were not recorded.

Additionally, because "actual expenditures were not adequately monitored," the expenditures of the special revenue fund exceeded budgetary limits by $363,451, and the debt service fund by $25,397, against state budget law.

"It was recommended we look [at expenditures] more often and monitor more closely," Scala said after the meeting.

Deficit budgeting of $942,981 to the capital projects fund was also in noncompliance with state budget law. The audit lists the cause as the budget not being amended to account for estimated sources and uses of funds.

The final issue of noncompliance pertains to the district not consulting with private schools about their eligibility to participate in the district's 21st Century Community Learning Center's grant, used by Franklin Elementary for an after-school program and by the high school.

Auditors said this was unintentional, and noted in the audit that the district did communicate with private schools about other grants.

Board approval of the 2007-2008 budget was postponed until the regularly scheduled board meeting Nov. 19 to allow the new director of finance, Misty Clifton, time to review it. Clifton's contract was approved by the board Monday. She replaces Brenda McCowan, who has taken the position of coordinator of federal programs and grants.

The board accepted a bid for about $112,000 to repair roofing at the junior high for the field house, gym and auditorium, either deteriorating from age or damaged by wind last spring.

A bid of nearly $90,000 for roofing and $45,866 for air conditioning in the middle school gym was approved, as was a bid of $19,963 to replace a boiler at the swimming pool.

lbavolek@semissourian.com

335-6611, extension 123